Costco Pallet Displays: Sizes, Requirements & Design Guide

What is a Costco pallet display?

A Costco pallet display is a pre-packed, retail-ready product display built on a standard block pallet. It's designed to be moved by forklift directly from the delivery truck onto the Costco warehouse floor — no unpacking, no shelf stocking, no assembly required.

Costco's warehouse model is built around speed and efficiency. Products sit on pallets in high-traffic aisles where members can shop directly from the display. That means your pallet display isn't just packaging — it's your entire in-store marketing presence. It needs to hold your product securely, meet Costco's strict dimensional and weight requirements, and communicate your brand clearly enough that a shopper walking by at a normal pace immediately understands what you're selling and why they should pick it up.

For many CPG brands, a Costco pallet display program is one of the highest-volume, highest-visibility retail opportunities available. Getting it right means strong sell-through rates and repeat orders. Getting it wrong — a display that fails during transport, doesn't meet spec, or gets rejected at the distribution center — means lost revenue and a strained buyer relationship.

Accepted pallet types

Costco requires block pallets throughout North America. Stringer pallets and white wood pallets are not accepted. Your display must be built on one of three approved pallet rental programs:

• CHEP (blue pallets) — the most widely used pallet pooling system in North America
• PECO (red pallets) — another major block pallet rental provider
• iGPS (plastic pallets) — lightweight, hygienic option popular with food and beverage brands

Your display manufacturer should handle pallet sourcing as part of the program. If you're working with a manufacturer that doesn't manage pallet logistics, that's a gap in your supply chain you'll want to close before production.

Size and weight requirements

Costco has strict dimensional and weight specifications for pallet displays. Displays that don't meet these specs will be rejected at the distribution center, so compliance is non-negotiable.

Specification	Requirement
Pallet size	48" x 40" (standard U.S. block pallet)
Display footprint	47.5" x 39.5" (recommended)
Minimum underhang	44" x 37" (display cannot be smaller than this)
Max height (sales floor)	58" including pallet
Max height (stackable)	52" including pallet (allows double stacking in transport)
Weight under 750 lbs	Must withstand 1,500 lbs on bottom layer
Weight 750 lbs or more	Must withstand 2,500 lbs on bottom layer
Product facing	48" side is the main facing (accessible from 3 sides)
Pallet gap	No gaps between sell units or master cartons on the pallet

The 5x5 rule

Costco's "5x5 rule" is one of the most important design principles for pallet displays: a customer should be able to understand what you're selling within 5 seconds from 5 feet away.

Costco warehouses are large, fast-paced environments. Members are pushing oversized carts through wide aisles, often walking past dozens of pallet displays in a single trip. Your display has one brief moment to communicate three things:

• What the product is — clear product photography or the product itself visible on the display
• Who makes it — your brand name and logo, prominently placed
• Why they should buy it — the value proposition, price point, or promotion

Displays that try to cram too much information onto the header card or wrap — multiple product lines, long feature lists, fine print — fail the 5x5 test. The most successful Costco pallet displays use bold branding, large product imagery, and a single clear message.

Design tips for passing the 5x5 rule

• Use a large, high-contrast header card with your brand name and hero product image
• Limit text to your brand name, product name, and one key selling point
• Choose bold colors that stand out against Costco's warehouse environment (concrete floors, steel racks, fluorescent lighting)
• Make the product accessible from three sides — shoppers approach from multiple angles
• Consider how the display looks from above, since members may see it while approaching down the aisle

Types of Costco pallet displays

Not all Costco pallet displays are the same. The type you need depends on your product's size, weight, and how Costco wants it merchandised.

Full pallet displays

The standard Costco pallet display — your product is loaded onto a full 48" x 40" pallet with a corrugate wrap or tray and a branded header card. Full pallet displays are placed on the warehouse floor in high-traffic aisles and are the most visible display format at Costco. Ideal for large products, multi-packs, or high-volume items that need maximum floor presence.

Half pallet displays

Half pallets (24" x 40") take up less floor space and are often used in tighter areas or for products with lower volume commitments. Some Costco locations use half pallets for end-cap or wing placements near register lanes. They require the same structural integrity as full pallets — the dimensions change, but the compliance standards don't.

Quarter pallet displays

Quarter pallets (24" x 20") are the smallest standard pallet display format. They're commonly used for impulse items, seasonal products, or brands testing a new SKU at Costco. Quarter pallets can be placed in secondary locations throughout the warehouse, including near checkout areas.

Stacked and tiered displays

Some Costco programs use multi-tier corrugate structures on the pallet — essentially shelving built into the display so multiple product rows or SKUs are visible at once. These are more complex to engineer (the structure needs to support the product weight across all tiers while staying within height limits) but can significantly increase the number of facings and the visual impact of the display.

Common mistakes that get displays rejected

Costco's distribution centers inspect incoming pallet displays for compliance. Displays that don't pass get rejected — which means wasted product, missed launch dates, and damaged buyer relationships. These are the most common mistakes we see:

Overhang or underhang outside spec

The display footprint must stay within the 47.5" x 39.5" recommended area and can't shrink below 44" x 37". Displays that hang over the edge of the pallet are a safety hazard and will be rejected. Displays that are too small waste pallet space and may shift during transport.

Exceeding height limits

Designing to 58" when your program requires double stacking (52" max) is a common and costly mistake. Always confirm with your Costco buyer whether double stacking is required for your program before finalizing the display height.

Weak structural design

Costco pallets get double stacked in trucks and warehouses. If your display can't handle the weight specified for your load class (1,500 lbs or 2,500 lbs), the bottom layer will crush and the entire shipment may be rejected. Structural engineering matters — this isn't a place to cut corners on corrugated board weight or flute type.

Poor product accessibility

Products must be accessible from three sides, with the 48" side as the main facing. Displays that only open from one side or require a staff member to restock create friction for Costco's warehouse model and can result in lower sell-through rates.

Failing the 5x5 test

Cluttered graphics, small text, and unclear branding are the fastest way to lose Costco shoppers. If your display doesn't communicate the product and value proposition within 5 seconds from 5 feet away, members will walk past it.

Costco pallet display checklist

Use this checklist to verify your Costco pallet display design meets all critical requirements before production:

• Built on approved block pallet (CHEP, PECO, or iGPS)
• Display footprint within 47.5" x 39.5" (no less than 44" x 37")
• Height at or below 52" for double stacking (or 58" max if single-stack confirmed)
• Bottom layer can support 1,500 lbs (under 750 lbs total) or 2,500 lbs (750 lbs+ total)
• Product accessible from three sides with 48" side as main facing
• No gaps between sell units or master cartons on the pallet
• Passes the 5x5 rule — product, brand, and value clear in 5 seconds from 5 feet
• Header card and wrap use bold, high-contrast graphics
• Structural design tested for double-stack transport
• All packaging and labeling meets Costco's vendor compliance standards